Which of the following is NOT a characteristic of a linear demand curve?
A. It has a constant elasticity.
B. A higher price makes the demand more elastic.
C. It has a constant slope.
D. The midpoint of the demand curve is unit elastic.
Answer: A
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If a firm has increasing returns to scale at all levels of output, then the
A. marginal cost for the firm declines over the entire range of output. B. average cost for the firm declines over the entire range of output. C. fixed costs of operation diminish to zero. D. production technology is optimized.
If the minimum wage is above the equilibrium wage rate, then an increase in the minimum wage ________ employment and ________ unemployment
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; increases
Suppose a couple's decision about where to live was based on maximizing family income. The wife is offered a job elsewhere paying $35,000 more per year, but the husband would have to take a $60,000 pay cut to move with her so they stay. The fact that the wife's salary is lower than average in her field is a result of
a. compensating differentials. b. supply decisions by the workers. c. gender discrimination. d. differences in human capital.
PZX Corporation has the opportunity to undertake an investment project that will cost $10,000 today and yield the company $13,310 in 3 years. PZX will forgo the project if the interest rate is higher than 10 percent
a. True b. False Indicate whether the statement is true or false